State Codes and Statutes
Statutes > Virginia > Title-5-1 > Chapter-1 > 5-1-2-8§ 5.1-2.8. Trust agreement securing bonds.
In the discretion of the Board any bonds issued under the provisions of thischapter may be secured by a trust agreement by and between the Board and acorporate trustee, which may be any trust company or bank having the powersof a trust company within or without the Commonwealth. Such trust agreementor the resolution providing for the issuance of such bonds may pledge orassign the revenues to be received, but shall not convey or mortgage anyairport project or any part thereof. Such trust agreement or resolutionproviding for the issuance of such bonds may contain such provisions forprotecting and enforcing the rights and remedies of the bondholders as may bereasonable and proper and not in violation of law, including covenantssetting forth the duties of the Board in relation to the acquisition ofproperty and the acquisition, construction, establishment, improvement,extension, enlargement, equipment, maintenance, repair, operation, andinsurance of the airport project or projects in connection with which suchbonds shall have been authorized, the rates and fees to be charged, thecustody, safeguarding, and application of all moneys, and conditions orlimitations with respect to the issuance of additional bonds. It shall belawful for any bank or trust company incorporated under the laws of theCommonwealth which may act as depositary of the proceeds of bonds or ofrevenues to furnish such indemnifying bonds or to pledge such securities asmay be required by the Board. Any such trust agreement may set forth therights and remedies of the bondholders and of the trustee, and may restrictthe individual right of action by bondholders. In addition to the foregoing,any such trust agreement or resolution may contain such other provisions asthe Board may deem reasonable and proper for the security of the bondholders.All expenses incurred in carrying out the provisions of such trust agreementor resolution may be treated as a part of the cost of the operation of theairport project or projects.
(1980, c. 750.)
